Informative Middleman Service, Variety-Expansion and Long Run Growth

Chien-Yu Huang

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: In reality, the intermediate firms not only conduct R&D but also provide informative middleman services to overcome the information cost generated by technological advancements. I incorporate the informative middleman services such as consulting, advertising, technical supporting, repair and maintenance into a variety-expansion model. I find that: (i) Activities of informative middleman influence the steady state growth rate. Given the technology spillover in the informative middleman sectors, the economy can sustain a higher economic growth rate; (ii) The growth of variety leads to the growth of informative middleman services per firm; (iii) Whether an economy may fall into development trap or cross threshold to provide informative middleman services depends on its market scale and the productivity of these services; (iv) The subsidy to informative middleman services can be viewed as a channel of policy intervention.

Pages: 29 Pages
Date: 2010-09
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://degit.sam.sdu.dk/papers/degit_15/c015_024.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to degit.sam.sdu.dk:80 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c015_024

Access Statistics for this paper

More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Bibliographic data for series maintained by Jan Pedersen ().